The news has been full of the demise of one the largest vehicle manufacturers in the world, General Motors. It seems the world recession has been the final straw that has broken this large Camels back, with the worlds demand for cars in steep decline. There has been much talk about potential rescues or takeovers from both competitors and those industries allied to the Automotive Industry, it is expected that an announcement from the US government today will indicate they are prepared to inject a further $30 Billion dollars into the business. It also widely predicted there will be significant reductions in the number of employees and dealers in the US which will almost certainly be mirrored in Europe and the UK.
How will all this affect the Contract Hire and Leasing industry is yet to be seen, however if Vauxhall is seen to be a much weakened brand it will almost certainly see reductions in used values, which in turn will cause Residual values to be reduced resulting in higher and less attractive rentals. Will the new leaner company still have the appetite to offer significant Volume related bonuses and marketing incentives to make the rentals look attractive. Is this the start of the end of the Fleet market as we know it, with companies having to again review their fleet policies?
If you are worried about your next vehicle acquisition why not look at the offers featured on our website www.nationalautomotive.co.uk where you will be able to find competitive Contract Hire deals on all the major manufacturers, might the time to look at an alternative brand.
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